Council chiefs challenged the idea that the merger of Welsh local authorities was a “silver bullet” to solve the public sector urgent financial problems.

Leaders of the Welsh councils meeting in Llandudno yesterday warned that proposals to halve the 22 authorities might save £80m a year while local government faced a far more urgent crisis of a £860m budget shortfall by 2018.

The scale of cuts in spending had already called library, leisure, transport, waste and community services into question.

But Welsh local government minister Lesley Griffiths told the annual conference of the Welsh Local Government Association that mergers could begin by 2018 and were about “much more than the cosmetic redrawing of a map and must lead to profound changes in the way they work”.

The independent Williams Commission in January proposed the cutback in authorities.

First Minister Carwyn Jones said that legislation to impose reforms would not be possible before the 2016 Assembly elections.

The Welsh Labour executive meets on Saturday to consider its proposed shake-up of local government.

But leader of the WLGA Bob Wellington said: “Any future reform of how these services are delivered must be based on a consideration of the public sector as a whole rather than a ‘paint it by numbers’ approach to council boundaries.”

Dyfed Edwards Plaid Cymru leader of Gwynedd said: “Reform is both crucial and unavoidable, and the Welsh public sector must embrace this as a once in a lifetime opportunity to shape services directly around the needs and views of our local communities.”

Dyfed Edwards

Hugh Evans, Independent leader in Denbighshire called for clarity from the Welsh Government.

The minister announced that local government election would go ahead under existing boundaries in 2017 but where authorities merged early, elections would take place in 2018.

She said: “Larger authorities would make more of the money available for the front-line services, but this reform is about much more. It must be a catalyst for profound change so Local Authorities are fit for this century.

“The 1996 reorganisation of Welsh local government was before devolution. Wales can do better. This time we will work design and build a new Local Government in Wales for Wales, together.”

North Wales Tory AM Mark Isherwood shadow local government minister said: “Welsh councils are currently in limbo due to Labour’s lack of leadership and direction, which is preventing progress on collaboration and sharing services.

“It is extraordinary for Labour Ministers to announce a fag packet decision on transition arrangements without having properly consulted with councils and before the publication of an independent cost analysis of merger proposals.”

Age Cymru responded to a study by the Older People’s Commissioner for Wales, released in February, which found that the axing of community services and infrastructure could have a "devastating impact" on lives.